@suzanne-oldham
active 7 years, 5 months agoForum Replies Created
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I have had the opposite problem. That is, I have NOT built savings and instead opted to use extra cash to pay down debt. While I have succeeded in reducing my debt, I do not have enough savings for unexpected expenses. So I plan to be build a better balance between saving and paying down debt so I can handle unexpected expenses.
Cash is King was my Finance Professor’s daily reminder to us during every lecture in Business School. It still rings in my ears and crosses my lips frequently.
Kudos to you and your husband for starting to save now. Here are a few expenses that took us by surprise:
MEDICAL EXPENSES: Your baby will have multiple visits to the Pediatrician during his/her first year. Depending on your insurance the co-pay can take a toll.
DIAPERS: If you choose to go the disposable diaper route they are expensive. I suggest doing research on the best value diaper out there.
LOSS OF TIME: This one was probably the one that hit us the hardest. A new baby cuts into free time. Gone are the free hours to plan, prep and cook meals or comparison shop for pricier items. A new baby becomes costly because you start paying for convenience. Your takeout expense line sky rockets and you buy items that are easy to find rather than the least expensive option. I wish someone had told me the cost of lost time so I could plan for it ahead of time.
Good luck with your pregnancy and baby and keep saving.
Thanks, Stacy. I just booked my first Air B N B because all the hotels were booked or too expensive. We will save money and be in a better location. Thanks for the suggestion.
I have a financial advisor who is an employee of an investment firm. I was told to steer away from an advisor who isn’t 100% independent. Does anyone have a position on this point of view?
Does the Social Security Administration still give an option to begin taking social security “early?” If so, is there a rule of thumb about whether you should take it early?
Thanks for your post. I have been debating on redoing and upgrading my business website but keep questioning the investment. And an added bonus is we can write off the expense.
Thanks for the information. I just went to MissingMoney and saw that I have about $40 in an old Pay Pal account.
WOW. I plan to share this story with my 22 year old who just asked how much he should save to his 401k. And you are right… you do not miss what you do not have.
Congratulations — not just on your graduate but on your planning. We just graduated our first from college and we were able to pay 3/4 of his tuition with 529s. Take Stacey’s advice and save from day one.
I am intrigued as I am in the middle of paying down debt. So I looked the Snowball method up online. Here are simple instructions on how it works:
Step 1: List your debts from smallest to largest.
Step 2: Make minimum payments on all your debts except the smallest.
Step 3: Pay as much as possible on your smallest debt.
Step 4: Repeat until each debt is paid in full.I am going to give it a try.
First, congratulations. A raise is always great news. I applaude your restraint. After a raise, we rush into spending a raise on a wish list item immediately then we wonder why we feel no impact from the raise. You, on the other hand, will really appreciate the raise later in the year when you do the fun stuff you have planned.
We learned a hard lesson recently. We bought a used car for under $4000 for our children. We thought we got a great deal. Instead, we bought a headache. We spent twice that in the first 18 months fixing major issues that were not uncovered in the inspection. My warning is it pays to spend a little more and absolutely check that warranty!
Boost your creativity! When I don’t run out and buy a new dress, shirt or necklace, I am forced to use my right brain and dig deeper in my closet. Inevitably, I find a long forgotten top that is back in style or a bracelet I have not put on in years but LOVE. Not only do I look as good as I would have with that new outfit, I am “richer” for it!
